EFTA00236626.pdf

NYSE: BX For Questions Regarding Your Tax Package Contact Partner DataLink Partner DataLink 522509 The Blackstone Group L.P. PO. Box 8447 GHISLAINE MAXWELL Hermitage. TN 37076-8447 116 E 65TH STREET Phone: (855)375-4158 Fax: (215) 982-6302 NEW YORK, NY 10065-7007 Email: [email protected] Website: www.PartnerDataLinkcomalackstone Dear Unit Holder: The Blackstone Group L.P. (BX) is pleased to enclose your 2014 tax information. This information is provided to assist you in reporting your allocable share of partnership items in your income tax returns. We are also enclosing for your general guidance the IRS 2014 Partner's Instructions for Schedule K-1. We recommend that you consider discussing this information with your personal tax advisor. As a publicly traded partnership, BX is generally not subject to income tax. However, our Unit Holders may be subject to federal, state and city income tax reporting in jurisdictions where they are resident and where BX has operations. In addition, Unit Holders who are not resident in the U.S. may be subject to U.S. tax reporting and U.S. withholding tax. The enclosed information includes an Ownership Schedule and if applicable, a Sales Schedule. This information can be used to help you calculate any gain or loss on transfers or other dispositions of units made during 2014. We encourage you to review the information contained in these Schedules to ensure that there are no errors or inconsistencies. If any inconsistencies are noted, please contact Partner Data Link via email at [email protected] or by phone at (855) 375-4156. If we receive your revisions prior to June 30, 2015, we will update our records and issue a new Schedule K-1, which will be filed with the IRS. Sincerely, The Blackstone Group L.P. CONFIDENTIAL UBSTERRAMAR00000953 EFTA00236626  THIS PAGE IS INTENTIONALLY LEFT BLANK CONFIDENTIAL UBSTERRAMAR00000954 EFTA00236627  651113 ❑ Amended K' OMB No. 1545-0123 Schedule K-1 Partner's Share of Current Year Income, (Form 1065) 2014 1= Deductions, Credits, and Other Items Department of the treasury For calendar year 2014, or tax I Ordinary b4siness tone (Ices) 15 Credits Internal Revenue Service year beginning . 2014 3 e-cl rig .20 2 Net rental real estate income (loss) 4 Partner's Share of Income, Deductions, 3 Other net rental income (loss) 16 Foreign transactions Credits, etc. e See back of form and separate instructions. A VARIOUS Part I Information About the Partnership 4 Guaranteed payments B 839 20-8875684 5 Interest income B Partnership's name. address. city, state. and ZIP code 38 C 144 ea Ordinary dividends THE BLACKSTONE GROUP E. 345 PARK AVENUE 182 D 65 NEW YORK, NY 10154 6b Qualified dividends 145 E C IRS Center where partnership filed return 7 Royalties OGDEN 7 F ▪ E Check if this a a publicly traded partnership (PIP) 8 Net short-term capital gain (loss) STMT Information About the Partner Bar Net long-tom capital gain (loss) 17 Alternative mammon tax (MAT) dents E Partner s identifn number 234 A )O(X-)O(-4883 9b Collectibles (28%) gam (loss) F Partner's narne. address. city. state. and ZIP code B GHISLAINE MAXWELL Sc Unrecaptured section 1250 gain 116 E 85TH STREET • 4 STMT NEW YORK, NY 10065-7007 10 Net section 1231 gain (loss) 18 Tax-exempt income and nondeductible expenses 51 G O General partner or LLC Limited partner or other ISC 11 Other income (loss) Ci member-manager member * STMT • Domestic partner O Foreign partner 11 What type of entity is this partner? INDIVIDUAL 12 If this partner is a retirement plan (RNSEP/Kezighletc.). check here 19 Ostnbutions 12 Section 179 deduction A 490 .1 Partner's share of profit, loss, and captal (see instructions}. Beginning Ending 13 Other deductions Profit 0.000000 % 0 000189 % H 20 Other information Loss 0.000000 % 0.000189 % Capital 0.000000 % 0.000189 % 1 A 206 K Partner's share of 'abilities at year end: STMT B 6 Nonrecourse 1.572 14 Self-employment earnings (loss) Qualified nonrecourse financing 215 N 8 Recourse STMT L Partner's capital account analysis: 'See attached statement for additional information. Beginning capital account . . . Capital contributed during the year S 35,972 Current year increase (decrease) $ 538 For IRS Use Only Withdrawals & distributions . st 490 ) Ending caplet account . . . 36,020 IX] Tax basis O GOP Section 704(b) book O Other (explain) M Did the partner contrioule property with a built-in gain or loss? ❑ Yes El No If 'Yes." attach statement (see instructions) For PlIp•IVIOtif Reduction Act Notice, sea Instructions for Form 1066. IRS.govilorm1065 Cat. NO. 11394R Schedule K-1 (Form 1065) 2014 3/22/2015 12:15:26AM 522509 CONFIDENTIAL UBSTERRAMAR00000955 EFTA00236628  Schedule K-1 (Form 1065) 2014 page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partners Instructions for Schedule K-I and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is Code Report on poesy') or ncripassve and enter on your retum as follows. L Empowerment zone Report on employment credit Passive loss See the Partner's Instructions M Credit for increashg research Passive income Schedule E. line 28. column (g) activities See the Partner's Instructions Norpassve loss Schedule E. line 28. column (h) N Credit for employer social Norpassive income Schedule E. line 28. column 0) security and Medicare taxes 2. Net rental real estate income (loss) See the Partner's Instructions O Backup withholding 3. Other net rental income (loss) P Other credits Net income Schedule E. line 28. column (g) 16. Foreign transectione Net loss See the Partner's Instructions A Name of country or U.S. 4. Guaranteed payments Schedule E. line 28, column 6) possession 5 Interest Income Form 1040. tine 8a B Gross income from at sources Form 1116. Part I 6a. Ordinary dividends Form 1040. tine 9a C Gross income sourced at lib. Qualified dividends Form 1040. tine 9b partner level 7. Royalties Schedule E. line 4 Foreign gross axon* sourced at partnership level 8. Net short-tens capital gain (loos) Schedule D. line 5 D Passive category 9a. Net long-term capital gain (loss) Schedule D. line 12 E General category Form Ills, Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet. ins 4 F Other (Schedule 0 instructions) Deductions allocated and apportioned of partner level 9c. Unrecaptured section 1250 gain See the Partners Instructions G interest expense Form 1118. Part I 10. Net section 1231 gain (loss) See the Partner's Instructions H Other Form 1116. Pan 11. Other income (loss) Deductions allocated and apportioned at partnership level to foreign source Code mcome A Other portfolio income foss) See the Partners Instructions I Passes category Involumary conversions See the Partner's Instructions J General category I Form 1115 Part I C Sec. 1256 contracts & straddes Form 6781. tine 1 K Other D Mining exploration costs recapture See Pub. 535 Other information E Cancellation of debt Form 1040. line 21 or Form 982 L Total foregn taxes pad Form 1116. Part II F Other income (loss) See the Partner's Instructions M Total forego taxes accrued Form 1118 Part II 12. Sieben 179 deduction See the Partners Instructions N Reduction in taxes available to credit Form 1118 kne 12 13. Other deductions O Foreign trading cross receipts Form 8873 A Cash contributions (50%) P Extraterritorial income exclusion Form 8873 B Cash contributions (30%) 0 Other foreign transactions See the Partner's Instructions C Noncash contributions (50%) 17. Alternative minimum tax (AMT) Items 13 Noncash conInbutiontl (30%) See the Partner's A Post-1986 donna:on adealmeM E Capital gain properly to a 50% Instructions B Adjusted gain or loss See the Partners organization (30%) C Depletion (other than oil & gas) Instructions and F Capital gain property (20%) D Oil gas. & geothernal—woss i-come the Instructions for CI Contnbutions (100%) E Oil gas. & geothermal —deductons Form 6251 H Investment interest expense Form 4952. line 1 F Other MAT items I Deductions —royalty income Schedule E. line 19 18. Tax-exempt income and nondeductible expenses .1 Section 59(e)(2) expenditures See the Partner's Instructions A Tax-exempt interest income Form 1040. line 8b K Deductions —portfolio (2% floor) Schedule A. line 23 B Other tax-exempt income See the Partner's Instructions L Deductions —portfolio (other) Schedule A. line 28 C Nondeductible expenses See the Partner's Instructions M Amounts pad for medical insurance Schedule A. line 1 or Form 1040.10.29 19. Distributions N Educational assistance benefits See the Partner's Instructions A Cash and marketable securities 0 Dependent care benefits Form 2441. line 12 B Distribution subject to section 737 See the Partner's Instructions P PreproductNe penod expenses See the Partner's Instructions C Other property 0 Commercial revitalization deduction 20. Other intormation from rental real estate activities See Form 8582 instructions A Investment income Form 4952. line 4a R Pensions and IRAs See the Partner's Instructions B Investment expenses Form 4952. line 5 S Reforestation expense deduction See the Partner's Instructions C Fuel tax credit information Form 4138 T Domestic production activities D Qualified rehabitation expenditures information See Form 8903 instructions (other than rental real estate) See the Partner's Instructions U Qualified production scum., income Form 8903. tine lb E Basis of energy property See the Partner's Instructions V Employer's Form W-2 wages Form 8903. line 17 F Recapture of low-income housing W Other deductions See the Partner's Instructions Credit (section 426)(5)) Form 8811, line B 14. Sotemployment earnings (loss) G Recapture of low-income housing Note.If you have a section 179 deduction or any partner-level deductions. see the credit (other) Form 8611. line 8 Partner's Instructions before completing Schedule SE. H Recapture of investment credit See Form 4256 A Net earnings (loss) from I Recapture of other credits See the Partner's Instructions self-employment Schedule SE. Section A or B J Look-back interest —competed B Gross farming or fishing income See the Partners Instructions long-term contracts See Form 8897 C Gross non-farm income See the Partners Instructions K Look-beck interest -iecome forecast 15. Credits method See Form 8886 A Low-income housing credit I. Dispositions of property with $ (section 42(8(5)) born pre-2008 section 179 deductions buildings M Recapture of section 179 decbction B Low-Income housing credit N Interest expense for corporate (other) from pre-2008 bolding& partners C Low-income housing credit O Section 453()(3) information (section 426X5)) from P Section 453A(c) information post-2007 buildings See the Partner's Instructions 0 Section 1260(b) information D Low-income housing credit R Interest allocable to production See the Partners (other) from post-2007 expenditures Instructions buldings CCF nonqualified withdrawals E Qualified rehabilitation T Depletion information —oil and gas expenditures (rental real estate) U Reserved F Other rental real estate credits V Unrdated business taxable ncome CI Other rental credits W Precool/notion gain (ose) H Undistributed capital gains credit Form 1040. line 73; check box a X Section 108(i) information I Biofuel producer credit Y Net investment income J Work opportunity credit 2 Other information See the Partner's Instructions K Disabled access credit CONFIDENTIAL UBSTERRAMAR00000956 EFTA00236629 THE BLACKSTONE GROUP M. 2014 SUPPLEMENTAL SCHEDULE - PAGE 1 PARTNER NAME: GHISLAINE MAXWELL PARTNER FEDERAL ID & ENTRY TYPE: )O0‘XX-4883 I INDIVIDUAL CUSTODIAN FEDERAL ID (IF APPUCABLE): LIne(s) Description Amount 11A1 Other Income (Loss) 11A2 Section 987 Gain (Loss) 11A3 Section 988 Gain (Loss) 11A4 Section 731(a) Gain 11C Section 1256 Contracts & Straddles 11E Cancellation of Debt 11F1 Interest Income 11F2 Swap Income (Loss) 11F3 Long Term Capital Gain (Loss) on Sale of Partnership 10 11F4 Short Term Capital Gain (Loss) 1 11F5 Long Term Capital Gain (Loss) 11F6 Section 475(f) Ordinary Gain (Loss) 2 11F7 Subpart F Income 34 11F8 Other Income (Loss) 11F9 Other Trade or Business Expenses 11F10 Deferred Income included under Section 108(iX1) or 108(i)(5XDXi) or (ii) 13J Intangible Drilling and Development Costs 1 13K Portfolio Deductions (2% floor) 4 13W1 Interest Expense on Debt Financed Distributions 3 13W2 Other Deductions 1661 Interest Expense Deductions at Partner Level 16H1 Other Deductions at Partner Level 1611 Passive Foreign Deductions at Partnership Level 16J1 General Foreign Deductions at Partnership Level 16K1 Other Foreign Deductions at Partnership Level 16L1 Total Foreign Taxes Paid 16M1 Total Foreign Taxes Accrued 17D Oil, Gas and Geothermal Gross Income 8 17E Oil, Gas and Geothermal Deductions 2 17F1 Excess Intangible Drilling Costs 3 20T1 Oil & Gas - Total Sustained Assumed Allowable Depletion 2 20T2 Oil & Gas - Cost Depletion (Working Interest) 2073 Oil & Gas - Cost Depletion (Royalty) 1 20T4 Oil & Gas - Percentage Depletion in Excess of Cost Depletion to the Extent of Basis (Working Interest) 20T5 Oil & Gas - Percentage Depletion in Excess of Cost Depletion to the Extent of Basis (Royalty) 2076 Oil & Gas - Percentage Depletion in Excess of Basis (Working Interest) 20T7 Oil & Gas - Net Equivalent BBLs of Production (in MBBL) 20V1 UBTI - Ordinary Income (Loss) 20V2 UBTI - Net Rental Income (Loss) 20V3 UBTI - Interest Income 20V4 UBTI - Dividend Income 20V5 UBTI - Short Term Capital Gain (Loss) 20V6 UBTI - Long Term Capital Gain (Loss) 2 20V7 UBTI - Section 1231 Gain (Loss) 33 20V8 UBTI - Long Term Capital Gain (Loss) on Sale of Partnership 4 20V9 UBTI - Investment Interest Expense 20V10 UBTI - Cancellation of Debt 20V11 UBTI- Other Income (Loss) 20V12 UBTI - Section 59(EX2) Expenditures 20V13 UBTI - Foreign Taxes Paid or Accrued 20X1 Deferred Section 108(i) Income not included - prior year 2 20X2 Deferred Section 108(i) Income not included - current or prior year 20X3 Deferred Section 108(iX1) Income included - current year 20X4 Deferred Section 108(iX5XD)(i) or (ii) Income included - current year 20X5 Deferred Section 108(iX2XAXi) OID Deduction - allowable under Section 108(iX2XAXii) 20X6 Deferred Section 108(i)(2KAKi) OID Deduction not deducted - current or prior year You should consult your tax advisor to determine the proper treatment of the above items. CONFIDENTIAL UBSTERRAMAR00000957 EFTA00236630 THE BLACKSTONE GROUP M. 2014 SUPPLEMENTAL SCHEDULE - PAGE 2 PARTNER NAME: GHISLAINE MAXWELL PARTNER FEDERAL ID & ENTITY TYPE: XXX-XX-4883 / INDIVIDUAL CUSTODIAN FEDERAL ID (IF APPLICABLE): Note Description Amount 1. Your share of the Foreign Qualified Dividends included on Line 1, 6B, and 11 is 2 2. The amount on Line 13H is derived from 2 activities: The amount derived from trade or business activities is - The amount derived from investment activities is 1 3. If you are a tax exempt entity, your share of Unrelated Business Taxable Income is reported on the 2014 Schedule K-1 Supplemental Information — Page 1, Line 20V1 through 20V13. 4. Your share of dividends from domestic corporations eligible for the 70% Dividends Received 142 Deduction included on Lines 1, 6A and 11 is 5. If you are a corporate partner, your share of the amount on Schedule K-1 that you should 3 recognize as ordinary income under Section 1250, pursuant to Section 291(aff1) is 6. Your share of U.S. effectively connected income ("Ecr) is as follows: Ordinary Income/(Loss) 5 Net Rental Income/(Loss) 3 Interest Income - Long Term Capital Gain/(Loss) 9 Unrecaptured Section 1250 Gain 4 Net Section 1231 Gain 41 Cancellation of Debt - Long Term Capital Gain/(Loss) on Sale of Partnership 10 Other Income/(Loss) - Section 59(e)(2) Expenditures 1 Interest Expense for Corporate Partners 6 7. If you are a foreign person, you may have received IRS Form 1042-S, Foreign Persons U.S. Source Income Subject to Withholding. Please follow the instructions for that form. 8. Line 16 codes I and J. Your share of deductions attributable to foreign source income (excluding interest expense) is reported on Line 16 codes I and J. This amount and the calculated deductible amount of investment interest expense shown on Line 13 code H attributable to foreign source income should be considered for foreign tax credit limitation purposes. The proper treatment of these amounts depends on several factors, including whether you are a U.S. individual or a corporate partner. You should consult your tax advisor to determine the proper treatment of the above items. CONFIDENTIAL UBSTERFtAMAR00000958 EFTA00236631 THE BLACKSTONE GROUP El 2014 SUPPLEMENTAL SCHEDULE - PAGE 3 PARTNER NAME: GHISLAINE MAXWELL PARTNER FEDERAL ID & ENTITY TYPE: XXX-XX-4883 / INDIVIDUAL CUSTODIAN FEDERAL ID (IF APPLICABLE): Line 20X - IRC Section 108(i) Deferred Income Information: Refer to your 2014 Supplemental Schedule — Page 1: Line 20X1 - Your share of deferred Section 1080) cancellation of debt (COD) income that has not been included in income as of the end of the prior taxable year. Line 20X2 - Your share of deferred Section 108(i) cancellation of debt (COD) income that has not been included in income in the current or prior taxable years. Line 20X3 - Your share of deferred Section 108(iX1) cancellation of debt (COD) income that you must include in income in the current taxable year. This amount is included in Line 11F10. Line 20X4 - Your share of deferred Section 108(iX5)(DXi) or (ii) cancellation of debt (COD) income that you must include in income in the current taxable year. This amount is included in Line 11F10. Line 20X5 - The partnership's original issue discount (OID) deduction deferred under Section 108(iX2XA)(i) that is allowable as a deduction under Section 108(iX2XA)(ii). Line 20X6 - The partnership's original issue discount (OID) deduction deferred under Section 108(i)(2XAXi) that has not been deducted in the current or prior taxable years. Passive Foreign Investment Company ("PFIC") Information — IRC Section 1295: The Blackstone Group has made timely IRC Section 1295 Qualified Electing Fund (t)EF') elections with respect to its investments in various PFICs. Your share of the ordinary earnings and net capital gains from these PFICs is included within this Schedule K-1. Passive Foreign Investment Company ("PFIC") Information - IRC Section 1296: The Blackstone Group has made a timely mark-to-market election with respect to its underlying PFICs. Your distributive share of any resulting income from making this election is included in your Schedule K-1, and no further reporting by you is required. Contributions to Various Foreign Corporations: The Blackstone Group indirectly owns interests in various foreign corporations. Pursuant to IRC Section 6038B, a contribution of property or cash by The Blackstone Group M. to a foreign corporation is deemed to be made by its underlying partners. As a result, if you are a U.S. domestic partner and are deemed to have contributed $100,000 or more to a foreign corporation you may be required to include IRS Form 926 with your tax return. If you believe you have a filing requirement the additional information needed to complete the Form can be obtained by contacting Partner DataLink. Protective Disclosure Statements: Further to the above, The Blackstone Group M. through its indirect investments in various underlying partnerships has been provided protective disclosure information related to IRC Section 165 losses exceeding a 52.000.000 threshold. if any, and/or IRC Section 988 losses exceeding a $50,000 threshold, if any. The Blackstone Group will file IRS Form 8886 reporting the foregoing protective disclosures. If you believe that you have an IRC Section 165 loss or an IRC Section 988 loss exceeding these thresholds, the additional information required to file Form 8886 can be obtained by contacting Partner DataLink. Net Investment Income Tax: The partnership is engaged in activities where items of income (deduction) / gain (loss) reported on this Schedule K-1 may be subject to the 3.8% net investment income ('Nll') tax under Section 1411. Certain portfolio income, passive trade or business net income, net rental income, or trader income from financial instruments or commodities as defined under Reg. Section 1.1411-5(0)(1) & (2) is subject to the NIl tax. Please consult your tax advisor. You should consult your tax advisor to determine the proper treatment of the above items. CONFIDENTIAL UBSTERRAMAR00000959 EFTA00236632  THE BLACKSTONE GROUPS. 2014 STATE SCHEDULE - PAGE 4 PARTNER NAME: GHISLAINE MAXWELL PARTNER FEDERAL ID & ENTITY TYPE: XXX-XX-4883 I INDIVIDUAL CUSTODIAN FEDERAL ID (IF APPLICABLE): The Blackstone Group M. may receive state sourced income from its investment portfolio. You may be required to file an income tax return with some of those states. Each of the states is identified below by its two-letter postal designation with YC identifying New York City. For each state we have reported the state sourced income by type in columns 1 through 8 below. Column 1 relates to Line 1 of the Schedule K-1. Column 2 relates to Line 2 of the Schedule K-1. Column 3 relates to Line 5 of the Schedule K-1. Column 4 relates to Line 7 of the Schedule K-1. Column 5 relates to Line 9a of the Schedule K-1. Column 6 relates to Line 10 of the Schedule K-1. Column 7 relates to Line 11A1 of the Schedule K-1. Column 8 relates to Line 11F3 of the Schedule K-1. Differences between state and federal amounts are due to rounding and variations between federal and state income tax laws. Generally all states where The Blackstone Group M. receives income are shown even though not all states impose an income tax. The Bladcstone Group It has not attempted to determine for each unit holder whether resident or nonresident stale tax returns should be filet 1Ne recommend that you consult your personal tax advisor on this matter. If you need the state business apportionment factors, this information can be obtained by contacting Partner DataUnk. (1) (2) (3) (4) (5) (6) CO (3) Ordinary Net Rental Interest Royalties Net Long-Term Net Section Other Long Term Capital State Business Real Estate Income line 7 Gain (Loss) 1231 Gain Income Gain (Loss) on Income (Loss) Income (Loss) Line 5 Line 9a (Loss) (Loss) Sale of Partnership Line 1 Line 2 Line 10 Line 11A1 Line 11F3 CA - I - - - 9 - - MA - I - - - 12 - 3 MI - - . . (1) I NY - - - - - 4 - - TX - I - 7 - 1 - - YC - - . . 5 . CONFIDENTIAL UBSTERRAMAR00000960 EFTA00236633  THE BLACKSTONE GROUP M. 2014 OWNERSHIP SCHEDULE PARTNER NAME: GHISLAINE MAXWELL PARTNER FEDERAL ID & ENTITY TYPE: )O0‘XX-4883 I INDIVIDUAL CUSTODIAN FEDERAL ID (IF APPUCABLE): This schedule details your transactional history regarding units of The Blackstone Group M.. as reported to the Partnership by your broker or our transfer agent. This schedule is limited to all units that are reported as owned by the partner federal identification number and entity type shown above. NOTE: A separate schedule and related Tax Package may be issued for any other entity types associated with the partner federal identification number shown above. The transactional information contained below has been utilized to prepare this Tax Package. If this transactional information is incorrect, then the information reported in this Tax Package (as well as the information reported to the IRS) may be incorrect Please contact Partner DataLink at (855) 375-4156 or BlackstoneK1Helpa by June 30, 2015 to report any errors or inaccuracies. NOTE: If you submit corrections to us after that date, you may be required to file Form 8082. Notice of Inconsistent Treatment or Administrative Adjustment Request with the IRS. THE SCHEDULE IS NOT PROOF OF OWNERSHIP TRANSACTION BROKER OR CERTIFICATE DESCRIPTION DATE NUMBER UNITS AC BUY 09/15)2014 BROKER - 221 1,113 END OF YEAR UNITS 1.113 Do not attach this schedule to your Federal or State Income Tax Returns. You should consult your tax advisor to determine the proper treatment of the above items. CONFIDENTIAL UBSTERRAMAR00000961 EFTA00236634